Platte River Equity has closed the firm’s fourth fundraise with $625 million in financial commitments. The fund, called Platte River Equity IV L.P., began raising capital in March.
The new fund will follow the firm’s investment strategy of making control investments in lower middle-market companies. Platte River Equity IV received investments from a variety of investors such as: endowments, pension funds, private foundations, funds of funds, family offices and net worth individuals.
Kirkland & Ellis LLP, Bartlit Beck Herman Palenchar & Scott LLP, and The Whitmire Group LLC served as legal advisers to Platte River on the fundraise. Capstone Partners served as exclusive placement agent for Fund IV.
Platte River, based in Denver, is a private equity firm that typically invests up to $80 million in businesses with $40 million to $250 million in enterprise values. The firm recently acquired specialty chemical manufacturer MFG Chemical Inc., previously acquired CTS Engines, bought industrial tool manufacturer Jameson LLC, and invested in hoist maker Huskie Tools. Platte River targets a variety of industries, including: aerospace and transportation, energy and industrial, agricultural and chemicals, metals and minerals.
Other middle-market fund raises include: Steadfast Capital Markets Group establishing a direct lending credit fund with Alcentra NY LLC; Private Advisors’ closing its fourth co-investment program; CVC Capital Partners’ $18 billion fund to target U.S. and European investments; the Riverside Co.’s first minority investment fund in April 2017; The Carlyle Group’s (Nasdaq: CG) fourth distressed capital raise; Vector Capital’s fifth PE fund; Monroe Capital LLC’s $800 million credit fund; and NXT Capital LLC’s fourth debt fund with $900 million. In 2016, the Carlyle Group (Nasdaq: CG) closed its fourth CLO fund at $507 million and Littlejohn’s Wellfleet closed a $406 million fund.